Multiple Choice Question (1 Viewer)

[michaeljennings]

Which of the following areas will not be influenced by monetary policy?
a) Unemployment
b) Economic growth
c) Wage Levels
d) Labour Productivity

I assume the answer is labour productivity but are wage levels influenced by monetary policy? I thought wage levels just influence the RBA's decisions rather than the RBA's decisions influencing wage levels? If that makes sense (unless im completely wrong and the answer is something else)

EDIT

Here are two more

Which of the following is an example of a negative externality?
a) An increase in the size of the CAD
b) Pollution control devices on cars
c) A rise in overseas oil prices
d) Increased traffic congestion

I think the answer is D but im not 100% sure

What is the consequence of movement of a Lorenz Curve to the right?
a) A decrease in the line of perfect income equality
b) An increase in marginal tax rates
c) A decrease in the rates of transfer payments
d) An increase in the Gini Coefficient

I thought the answer was D but i dont actually know what they mean by 'a decrease in the rates of transfer payments'...could someone explain that to me?

 

[artosis]

Im only guessing here but:

1: D
Probably the best answer out of all of them. Wage levels and the RBA........ the only thing i can think of is their control over inflation, whereby higher inflation will cause demand in wage level increases from skilled workers to stop them losing purchasing power.

2: D
There's a chance that A could be right. but i think negative externality is referring to market failure.

3: D
Transfer payments... i think its do to with welfare payments from others countries.
So its basically saying a decrease in welfare payments.

 

[michaeljennings]

Im only guessing here but:

1: D
Probably the best answer out of all of them. Wage levels and the RBA........ the only thing i can think of is their control over inflation, whereby higher inflation will cause demand in wage level increases from skilled workers to stop them losing purchasing power.

2: D
There's a chance that A could be right. but i think negative externality is referring to market failure.

3: D
Transfer payments... i think its do to with welfare payments from others countries.
So its basically saying a decrease in welfare payments.

Ah thanks the explanation for the first makes sense.

But for the third, wouldnt a decrease in welfare payments make income inequality worse? creating a shift to the right of the Lorenz curve??

 

[mangoz]

No transfer payments are social welfare payments within the country by the government so the option means that there is a decrease by social welfare payments by the government to the country meaning it causes more inequality. HOWEVER READING THE QUESTION IT SAYS "consequence" therefore this is wrong as it is a cause for the shift. Thus making D the only possible option

 

[michaeljennings]

ohh makes sense now thanks lol